Universal (UVV) risk factors, FY2025 10-K

Other

1. 01In areas where we purchase leaf tobacco directly from farmers, we bear the risk that the tobacco we receive will not meet quality and quantity requirements
2. 02The leaf tobacco industry is competitive, and we are heavily reliant on a few large customers
3. 03Our financial results can be significantly affected by changes in the balance of supply and demand for leaf tobacco
4. 04Our financial results will vary according to tobacco growing conditions, customer requirements, and other factors. These factors could also limit the ability to accurately forecast our future performance and increase the risk of an investment in our common stock or other securities
5. 05Major shifts in customer requirements for leaf tobacco supply could significantly affect our operating results
6. 06We may not be able to increase prices to fully offset inflationary, tariff, and other pressures on costs, such as raw products, packing materials, labor, energy, and distribution costs
7. 07Weather and other conditions can affect the marketability of our products
8. 08Legal, regulatory, or other market measures to address climate change could negatively affect our business operations
9. 09Our plant-based ingredients business is subject to industry-specific risks which could have a material adverse effect on our results of operations
10. 10Disruption of our supply chain for our plant-based ingredients operations could have a material adverse effect on our business
11. 11We may not be successful in pursuing strategic investments or acquisitions or realize the expected benefits of those transactions because of integration difficulties and other challenges
12. 12We may be adversely impacted if our information technology systems fail to perform adequately, including with respect to cybersecurity issues
13. 13The inability for us to attract, develop, retain, motivate, and maintain good relationships with our workforce, including key personnel, could have a material adverse effect on our business and our profitability
14. 14We are dependent on a seasonal workforce to meet our operational needs
15. 15Epidemics, pandemics or similar widespread public health concerns could have a material adverse effect on our business, financial condition, results of operations and demand for our products and services
16. 16Government efforts to regulate the production and consumption of tobacco products could have a significant impact on the businesses of our leaf tobacco customers, which would, in turn, have a material adverse effect on our results of operations
17. 17Government actions on the sourcing of leaf tobacco could result in increased barriers in meeting our customers’ requirements, which could have a material adverse effect on our performance and results of operations
18. 18We conduct a significant portion of our operations internationally, so political and economic uncertainties in particular countries could have a material adverse effect on our business and results of operations
19. 19Increasing scrutiny and changing expectations from governments, as well as other stakeholders such as investors and customers, with respect to our sustainability considerations may impose additional costs on us or expose us to additional risks
20. 20Changes in tax laws in the countries where we do business could have a material adverse effect on our results of operations
21. 21operate for a sufficient period of time and management has concluded, through testing, that the related controls are effective. Furthermore, we cannot give any assurance that the measures we take will remediate the material weakness
22. 22We are not currently eligible to use a Form S-3 registration statement, which could impair our capital-raising activities
23. 23Failure of our customers or suppliers to repay extensions of credit could have a material adverse effect on our results of operations
24. 24Fluctuations in foreign currency exchange rates could have a material adverse effect on our results of operations
25. 25Changes in interest rates could have a material adverse effect on our results of operations
26. 26Low investment performance by our defined benefit pension plan assets and changes in pension plan valuation assumptions could increase our pension expense and could require us to fund a larger portion of our pension obligations, thus diverting funds from other potential uses